Paradigm Aims for $850M Crypto Fundraise Amidst Industry Resurgence

Paradigm Aims Crypto Fundraise
Paradigm is seeking to raise fresh funds for crypto investments as venture capitalists return to the growing digital asset industry.

According to a report by Bloomberg on April 2, the crypto investment company Paradigm is planning to raise up to $850 million for a new fund, driven by Bitcoin’s rebound beyond its all-time high and the resurgence of the cryptocurrency market close to its peak in 2021.

Data from RootData indicates that investments in crypto protocols and projects surged by over 50% last month, with capitalists injecting approximately $1.1 billion into the digital asset sector. Decentralized finance (DeFi) solutions operating on platforms like Ethereum, Polygon, and other DeFi-centric blockchains attracted the most significant funds.

Paradigm aims to gather at least $750 million, potentially marking its largest fundraising since 2021 when the company raised $2.5 billion for a crypto fund, which was then the largest of its kind until Andreessen Horowitz (a16z) launched a $4.5 billion crypto investment vehicle in May 2022.

Other venture capital firms, such as a16z, Hack VC, and Hivemind, are also involved in fundraisers ranging from $50 million to $150 million as the crypto market gains momentum once again.

Paradigm’s Investment in FTX
Led by Coinbase Co-Founder Fred Ehrsam and former Sequoia Capital executive Matt Huang, Paradigm was also an investor in the now-bankrupt crypto exchange FTX. Huang was part of a team that invested $278 million into Sam Bankman-Fried’s venture.

Last November, during a three-week trial, Huang, the former Sequoia partner, testified that Bankman-Fried had misled Paradigm regarding FTX’s operations. Huang’s testimony contributed to a conviction against FTX’s founder.

Following the bankruptcy of FTX, Huang’s firm wrote down its investment in the exchange to zero. Bankman-Fried was subsequently sentenced to 25 years in prison for defrauding investors and customers of over $8 billion.

Also Read: BNB Chain’s $1 Million Reward for Meme Coin Creators

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